ROLCON ENGINEERING CO. LTD.,
1. We have audited the attached Balance Sheet of ROLCON ENGINEERING COMPANY LIMITED asat 31st March, 2011 and also the Profit & Loss Account as well as Cash Flow Statementof the Company for the year ended on that date annexed thereto. These Financial Statementsare the responsibility of Company's management. Our responsibility is to express anopinion on these financial statements based on our audit.
2. We have conducted our audit in accordance with the Auditing Standards generallyaccepted in India. Those Standards re quire that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of mate rialmisstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the Financial Statements. An audit also includes assessing theaccounting principles, used and significant estimates made by management, as well asevaluating the overall financial statement presentation. We believe that our auditprovides a reasonable basis for our opinion.
3. As required by the amended Companies (Auditors' Report) Order, 2003 issued by theCentral Government of India in terms of subsection (4A) of section 227 of the CompaniesAct, 1956, we annex here to a statement on the matters specified in paragraphs 4 & 5of the said Order.
Further to our comments in the annexure referred to in paragraph 3 above, we reportthat:
(1 ) We have obtained all the information and explanation, which to the best of ourknowledge and belief were necessary for the purpose of our audit.
(2) In our opinion, proper books of account as required by law have been kept by theCompany so far as it appears from our examination of those books.
(3) The Balance Sheet and Profit & Loss Account dealt with by this report are inagreement with the books of account.
(4) In our opinion, the Balance Sheet and Profit & Loss Account dealt with by thisreport comply with the Accounting Standards referred to in sub-section (3C) of the Section211 of the Companies Act, 1956.
(5) On the basis of written representation received from the Directors, as on 31stMarch 2011 and taken on record by the Board of Directors, we report that none of theDirectors is disqualified as on 31st March, 2011 from being appointed as a Director interms of clause (g) of subsection (1) to section 274 of the Companies Act, 1956.
(6) In our opinion and to the best of our information and according to the explanationsgiven to us, the said accounts read with the other notes thereon give the informationrequired by the Companies Act, 1956, in the manner so re quired and give a true and fairview in conformity with the accounting principles generally accepted in India:
(a) In the case of Balance Sheet, of the state of affairs of the Company as at 31stMarch- 2011;
(b) In the case of Profit & Loss Account, of the profit of the Company for the yearended on that date and
(c) In the case of Cash Flow Statement of the cash flows for the year ended on thatdate .
For THACKER BUTALA DESAI
FIRM REGI. NO. 110864W
Date : 4th May-2011
ANNEXURE TO THE AUDITORS' REPORT
(Referred to in paragraph 3 of our Report of even date)
(i ) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of Fixe d Assets.
(b) Fixed Assets have been physically verified by the management at reasonableintervals, no material discrepancies were noticed on such verification
(c) No substantial part of Fixed Assets has been disposed off during the year;
(ii) (a) Physical verification of inventory has been conducted at reasonable intervalsby the management;
(b) The procedures of physical verification of inventory followed by the management arereasonable and adequate in relation to the size of the Company and the nature of itsbusiness.
(c) Ac cording to information and explanation given to us, the discrepancies noticed onverification be tween the physical stock and book were not material.
(iii) (a) The Company has not granted any Loans, secured or unsecured to companies,firms or other parties covered in the register maintained under section 3 01 of theCompanies Act,1956. Accordingly, the provisions of clause 4 (iii)(b) to (d) of the Orderare not applicable. (b) The Company has not taken any loans, secured or unsecured fromcompanies, firms or other parties covered in the register maintained under section 301 ofthe Companies Act,1956. Accordingly, the provision of clauses 4 (iii) ( f) and 4(iii) (g)of the Order are not applicable.
(iv) In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company andthe nature of its business with regard to purchase of stores, raw mate rials, includingcomponents, plant and machinery, equipment and other assets and with regard to the salesof goods & services. We have not noticed any continuing failure to correct majorweakness in internal control system.
(v) (a) In our opinion and according to the information and explanations given to us,the Company has entered the particulars of contracts or arrangements that need to beentered in to a register in pursuance of section 301 of the Act.
(b) According to the information and explanations given to us, each of thesetransactions made in pursuance of such contracts or arrangements have been made at pricewhich a re reasonable having regard to the prevailing market price at the relevant time.
(vi) The Company has not accepted any deposits from the public.
(vii) In our opinion, the Company has an Internal Audit System commensurate with thesize and nature of its business.
(viii) According to the information and explanation given to us, the Central Governmenthas not pre scribe d maintenance of cost records under Section 209(1) ( d) of theCompanies Act, 1956, for any of the products of the Company.
(ix) (a) According to the re cords of the Company, the Company is regular in-depositingundisputed statutory dues including Provident Funds, Investor Education and ProtectionFund, Income Tax, Central Sales/ Vat Tax, Wealth Tax, Service Tax, Custom Duty, ExciseDuty, Cess and any other statutory dues with the appropriate authorities. We are informedthat the Employees State Insurance Scheme is not applicable to the Company. No undisputedamount payable in respect there of were outstanding at year end for a period of more than6 months from the date they become payable. (b) According to the books of accounts and records as produced and examine d by us in accordance with the generally accepted auditingpractices in India, the re are no dues of Income Tax, CST, VAT, Wealth Tax, Custom Dutyand Cess which have not been deposited on account of any dispute.
(x) The Company has no accumulate d losses at the end of the financial year and it hasnot incurred cash losses in the current and immediately preceding financial year.
(xi) According to our audit procedure and on the basis of information and explanationsgiven by the management, the Company has not defaulted in repayment of dues to anyFinancial Institution or Bank. The Company has not issue d any Debenture.
(xii) The Company has not granted any loans against security by way of pledge ofshares, debentures and other securities, so the question of deficiency does not arise.
(xiii) As the Company is a manufacturing company, the provisions of any special statuteapplicable to chit fund are not applicable. Accordingly, the provision of sub-clause4C(xiii) of the Order are not applicable.
(xiv) The Company is not dealing in or trading in shares, securities, de bentures andother investments. Accordingly, the provision of clause 4 (xiv) of the Order are notapplicable
(xv) The Company has not given any guarantee for loans taken by others from banks orFinancial Institutions. Therefore, the question of terms and conditions whereof are prejudicial to the interest of the Company does not arise.
(xvi) In our opinion and according to the information and explanations given to us, theterm loans obtained during the year under review have been applied for the purpose forwhich they were obtained.
(xvii) In our opinion and according to the information and explanations given to us,and on an overall examination of the Balance Sheet of the Company, we report that no fundsraise d on short-term basis have been used for long term investment.
(xviii) The Company has not made any pre ferential allotment of shares to parties orcompanies covered in the register maintained under Section 301 of the Companies Act,1956during the year under review.
(xix) The Company has not issue d any de bentures during the year. Therefore, thequestion of creation of securities or charges in respect thereof does not arise.
(xx) The Company has not made any public issue during the year. Therefore, the questionof disclosure and verification of end use of money so raised does not arise.
(xxi) To the best of our knowledge and belief and according to the information andexplanations given to us, no material fraud on or by the Company has been noticed orreported during the year under review.
For THACKER BUTALA DESAI
FIRM REGI. NO. 110864W
Date: 4th May- 2011